rishaad: what have investors got them self into today? >> take a look at markets. we are not in the week on a good note at all. the fed still seems to be a question about how this will affect risk assets. david: especially with the move in the dollar. two to threeak for hours. when china kicked off. yvonne: we've been talking about the stronger dollar. we have been talking about seeing a split government, checks and balances, not going to see tax 2.0, but a rebound once again. that will weigh on risk assets.

we are seeing that across the board when it comes to currencies. most of asia fx falling out of favor, the korean won in particular, aussie dollar as well. the renminbi still holding around 69435. the week atd to end a loss when it comes to asian stocks. jakarta leading losses, down 1%. the large cap chinese stocks falling .8% today. the nikkei 225 down 154 points at the moment. it is interesting to see what actually changed at this fed meeting. not much changed when it came to the statement. the market still trying to deal with what has been priced in. this was supposed to be one of the most boring meetings after when it comes to the fed,

because it is the last one without press conference. we are seeing markets move on that. rishaad: i suppose we should be checking on the states, washington clamping down on vapi ng. let's get the first word news. we are watching asian tobacco stocks after the washington post reported the fda is set to impose restrictions on e-cigarette products. officials saying sales limits could be announced next week. they are worried about the growing numbers of young people trying e-cigarettes. overall smoking rates are the lowest on record. the u.s. is propelling barring immigrants who crossed the border from mexico from being granted asylum. andacting attorney general the homeland security secretary say the current system is overwhelmed. the president has blamed u.s. asylum rules for luring

migrants. trump plans to issue a proclamation on friday. google has changed some policies on sexual misconduct after employees walked out around the world last week. it is ending mandatory arbitration for sexual harassment and assault claims, and promising transparency about investigations and their outcomes. that changessay don't cover contractors or racial discrimination. car sales in china decline for a fifth consecutive month, putting markets closer to the first annual fall into decades. retail sales dropped 13%. the total for the first 10 to 18.4s down 2.5% million. carmakers are reeling from weak profits and the trade war. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg.

david: right. for more context on some of the fed and theer, the latest inflation read out of china. let's bring in mark cudmore out of singapore. what is more important today? well, as you say, the markets are reacting in a slightly exaggerated fashion. there was no surprise. it emphasized the fed is on track. that is why markets were disappointed. there was small hoped there would be a reference to the changing political situation or october star moral, and that might indicate -- october turmoil. it was not a surprise. inkets got too carried away trying to trade these new themes. we believe that the environment

is constructed for risk assets, but we didn't feel the midterms was a massive game changer. we have removed some uncertainty premium. it does not mean we have to trade them all in a few days. were seeing consolidation, recalibration. dollarek will see softness, but not in any crazy fashion. rishaad: it is hard to predict where the dollar goes next. it is always hard protecting currency movements, isn't it? >> personally i have the dollar wrong the last couple of months. , which wasummer anticipated, i thought we would see a resumption of the dollar downtrend. instead we are bouncing towards the top end of the range. the dollar this year has been difficult. people are trying to work out the dollar, but on different time spans. the trade war,

which was supported for the dollar initially, but some people feel it will become a dollar negative. i have been one of those people who thought it would kick in by q4. at some point, that will become an issue, but we have not seen many signs of that. we know the fed cycle is supported for the dollar, but when we get to all the rate hikes priced in it gets to be more of a negative. are we at that point yet? not quite, but we must be close. rishaad: good stuff. mark cudmore in singapore. you can go to our blog. david: that is on to your bloomberg. commentary on what is happening today. rishaad: let's go to sydney. tom, it is great to see you. how closely are you watching the dollar these days?

it is hard to predict what happens next, as it always is, but one of the main factors behind the gains we saw was the fed being used as an excuse and would have been bid up anyway. excuse.nk it is an the dollar is basically following the relative growth strength in the u.s. versus trading partners. european growth is behind u.s. growth. china is slowing meaningfully, while the u.s. is still in an almost an acceleration mode. this naturally attracts capital to the u.s. it is tricky to answer this question, but when do you think the other fundamentals of the u.s. economy, twin deficits, which virtually everyone tells a should be dollar negative? >> let me answer that in an

unusual way. one set of data i was looking at this morning had to do with the size of the fed's balance sheet. , the sizek of this qe of the assets in the balance sheet was $4.5 trillion. they have been tapering downward the size of that balance sheet down to $4.1 trillion, a huge amount of money taken off, but while this happens, it constrains liquidity in the emerging world. in asia, we are feeling a lack of capital as capital flows to the u.s. dollar. this is much more important than what the fed funds rate is. we know they will raise rates next month. that is obvious. this balance sheet and try to get it to $3.5 trillion in 15 months, that will

be too fast and take too much liquidity out of the system and cause a downturn in asia. how much do they look at what is going on in asia? we are concerned about the liquidity position, particularly the pboc, and other central banks have been arguably raising rates unnecessarily. your views? have beenentral banks raising rates because of the relativity and rates between their countries and the united states. , at looking at australia country that has not raised rates yet, we may come under that pressure next year ourselves because u.s. interest rates may be so high that we need to protect our currency. that is not the view i am taking, but it is a possibility. we have seen it in other nations who have phrased rates when

there is very little inflation. this is where it is getting interesting. david: right. lots more to talk about with you. convert murphy will be staying with us. om murphy will be staying with us. coming up, a report that shows plenty of opportunities within china. speak tothe show, we the author and find out how to take advantage of china's growing pile of assets. rishaad: next, crude slumping into a bear market days before opec production meeting. we are asking if the cartel will bow to pressure and cut output yet again. subscribers who want to join in the conversation and send us messages are , a onens, go to tv shop for analysis, interviews, and asked the guests a question. this is bloomberg. ♪

rishaad: having a look at oriole. slumping, falling by 20% from its october high. this, opec feeling the pressure to cut output when the cartel and its allies meet on sunday. let's discuss this with our guest. what is the chance opec announces new supply cuts? one day the saudis are saying we will pump as much as we can, then we will keep supply roughly where it is. >> it has been is in full, especially because of -- been eventful, especially because of iran in anticipation of sanctions. that has not entirely happen. supplieshas built up

to compensate. they will have to curtail that again. opec is meeting this weekend. we expect signs with a will talk about cutting output somewhere down the line in 2019. david: it is not supposed to be a surprise they are talking about it given the supply coming online, but the chances of them doing something, what are the chances of that happening in the outlook for global demand and supply? outlook isnd supply moving towards a surplus gradually. there are signs for that. for the last seven straight weeks, inventories have risen at one million barrels per day. ,f you look at the demand side most oil demand over the last two years came from emerging markets. you can see chinese demand is down 2% this year.

sales are down five months in a row. sales in india for gasoline is turning negative in recent months. you are seeing demand coming down, surplus building up. there has to be a move towards bouncing the market. rishaad: india is part of the eight countries given waivers for exports out of iran. how does that affect the balance? what we see is indian exports will be 1.1 million barrels a day. 20% would come from china and india. we are surprised by countries that were announced as part of the exemptions, italy and greece , so that would inch up supplies and put more pressure on opec and russia in terms of cutting output. david: thank you. murphy back. he is still with us in sydney.

tom, you probably heard the conversation on oil. the broader picture is we are u.s., the in the global economy really. typically what dynamics do we see late cycle in commodities prices? of the cycles in which i have invested have ended in a commodity price blowout. commodity prices spiked to a great degree at the end of the economic cycle, and that is usually a good indication you are in fact very late cycle. turned what crude oil is doing, but across the commodity spectrum, a number of commodities in the base metal are performing reasonably well, but not doing what you would expect them to do at the end of the cycle.

the difference between the cycle and other cycles is that emerging markets are far more prominent in this economic cycle than they have been in previous ones, because emerging economies are booming. there industrial sectors are booming. they are no longer agricultural commodity countries. they are commodities with large consumer sectors of is that they are behaving differently to the commodity emerging countries of 1960's and 1970's, which was a different picture comes so we can't completely rely upon history as a guide to the future. , theur correspondent said main drivers of oriole are the slowing emerging markets on the demand side and the inventories on the supply side. they are both going the wrong way for the oil price. david: staying in commodities, saying overweight, keep patient. how long can i keep patient? >> that is a hard one.

when you go overweight gold, you go overweight with a long time frame. it is an alternative currency. to the commentck at the beginning of the will not china, if you will, until the twin deficits are a concern. at the moment, investors in the united states are far from being concerned about the budget blowout. until they are, gold is not going to look that great, but is important as a diversifier, and it is the part of the portfolio you don't want to make money on, because if it does well in a because everything else is falling apart. i believe having a component in gold in a portfolio given death levels in the united states is a smart thing to do. everything falling

apart? sure, we have had a bit of volatility. you are suggesting when we have these bouts of volatility in equity markets, we see them as a turning point. we have come off on the vix. do you still hold that view we are at a turning point? >> i do, but i don't see things falling apart at all. the reason for the cold component is as a stabilizer to a portfolio. cash,d days of holding property, shares one third each is nonsense. it is not sophisticated anymore. the reason you hold gold is for those turning points. next year, we have just come to a year where we are used to earnings growing at 25% to 27%. that will not happen in 2019.

it will be a lower rate of earnings growth. the momentum of earnings growth has propelled equity markets the last couple of years. that will change. fall apart? no. it will change and decelerate. it is not the environment where you will want to be heavily overweight equities. bound to happen in a rising rate environment. much of the earnings growth, 30% to 40% in the u.s., has come from share buybacks. without cheap money, they will not borrow anymore and use that money to buy back shares. maybe they should have been investing in their own companies anyway. a realistic to more position as earnings go, rather than ones that up and artificially heightened. >> it is a fair comment. i would say there are fewer shares listed than 10 years ago. there are fewer shares to buy. more companies are private and they were before.

yes, there is a supply issue. even warren buffett the other day put $900 million into his own stock. admittedly, he had over $90 billion in cash, but that is an unusual move for him, because he likes to look at the companies, not his own stock. it is an indication we will see that trend continue, because there aren't that many things to buy. if you have cash to deploy in corporate america, you create another dividend or by shares back. that will not change. david: a final question since were talking the roles of assets in your portfolio. what about sovereigns, treasuries? what role should treasuries now play when it seems as if this bull market is seemingly over? >> it is an interesting one. docontinue to say to clients

not invest in sovereigns, but corporate securities. in many cases, your johnson & johnson, if you will, are better quality than governments. we have never seen this before either. if you look at the balance sheets of some of the world's best corporations and compare them to the governments of the countries in which they sit, the printing,s are weak more bond money, and they will continue to do so. you get a premium for investing in it, so sovereigns are not the place to be in my opinion. rishaad: thank you very much indeed for that. more coming up on the program, including more on oil. this is bloomberg. ♪

david: welcome back. the latest business flash headlines. after under pressure earnings missing estimates last quarter. operating profit falling on winning demand for traditional sedans in america. hit because of its heavy focus on cars like the ultima. it is retaining its forecast for the full year. volkswagen ready to electric tesla with an subcompact crossover costing $21,000. it will be built in germany. vw expecting to sell 200,000 vehicles a year. the car is seen as on part with the tesla model three. david: volvo forced to shake up production strategy to sidestep tariffs. to exportceled plans

sedans from america to china and will halt imports of an suv from china. shipments of the bigger sedans will also be dramatically reduced. yvonne: this is how we are faring in tokyo. shares probably on the nikkei down .8%. some huge moves. one stock, the game maker in japan, the biggest publisher in china, forecasting profit could drop 20%. they are saying it one not be freezes in gaming china, but more about a seasonal impact. still, the stock down close to 12%. -- 9% due to weak sales. record revenue for the quarter.

chinese shoppers are buying more at home. more on that. this is bloomberg. ♪

10:20 nine in hong kong, 1:29 in sydney. thefinancial times says senior editor has been refused entry to hong kong after his work these of was canceled last month. the foreign correspondents club has asked hong kong's chief executive for an explanation. augustb hosted a talk in by person whose pro-independent party was outlawed. the justice department is suing ubs for selling mortgage-backed securities by "knowingly and repeating the making fraudulent statements about the loan supporting the trust."

it relates to 40 securities ubs sponsored, managed, or offered. the bank says the suit is not supported by the facts or the law. the bank of australia has given an upbeat assessment of the economy, saying growth and hiring are spurring inflation. the quarterly statement on monetary policy reiterated that higher interest rates are likely to be appropriate at some point, but says there is no strong case for a move at the moment. as predicted by everyone, the fed stood still, but remains on course to hike next month. the policy statement notes economic activity rising at a strong rate in the labor market continues to firm. it repeated plans for gradual rate increases in the coming months. the fomc added that risks to its outlook seemed balance. rishaad: -- global news 24 hours a day on

air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. yvonne: thank you. let's look at your markets. not looking pretty here. if you are long markets, the shanghai composite, .8%. losses, seng extends down more than 470 points. if you look at what is dragging, it is energy names like cnooc and sinopec. you see oil entering a bear market. that is hurting some of the miners. h-shares down 2%. tech stocks not in favor today in taiwan. we are down 1%. not looking pretty, guys. david: it is friday. we have two days to recover. it was a good week last week. a little flat right now.

let's talk about china. the non-performing loan market has actually seen a remarkable uptick in sales activity in recent months according to a new report out of pwc which sees a sunnier outlook for investors increasing the present in china's distressed debt market. let's bring in the author of the report. good morning. from theas changed previous version of this report, which wasn't very rosy? sales fromtally, the the banks have picked up. part of that is because the cbrc has taken efforts to clamp down on bad loans and get the banks to recognize the bad loans. once that starts, it is either s, then or sell to amc' they have been selling entrepreneur investors. rishaad: how does it work?

put portfolios together, package them, show them to investors. investors do due diligence and decide they whether -- decide whether they want to buy them or not. i think the packaging -- rishaad: you know what you are getting in this case. >> they are different loans then you had prior. these are all commercial, private loans. they stripped out anything to do with the state. ,0% back by collateral primarily property. again, it is a straightforward package these investors are looking at. yvonne: you talk about some sellers of this debt. one was worried about a potential bubble forming because there are these foreign investors coming in and they are not doing their due diligence and are driving prices of nonperforming loans at the moment. has that tamper down or are we

in a bidding war that is ensuing? >> foreign investors want to stay out of bidding wars. they don't try to find themselves in situations where they are betting against another investor. they are looking for portfolios where they can zero rope in and avoid the competition. prices are not on the rise. they are going the opposite way on a downward trend. the reason is there is a lack of domestic investors in the marketplace at the moment. they have historically had to borrow money to buy these loans. foreign investors have the capital. domestic investors have had that source shut off. they are not able to get loans from the banking system, causing them to take a pause in the market. david: we are putting up the list of the major players from your report. twonoted you are aware of or three looking to buy more.

i'm not sure you would be willing to share who the three are? >> i can't reveal who they are, but are other big-named funds like these. all of the distressed debt players active and markets are active in china. everyone sees china and india as very important markets in this part of the world. tohaad: the lasting you said me you said they were backed by property. we have a story about 50 million homes in china the find is being vacant. if that should grow in the to a housing cooling, what happens? >> that is an issue. it is particularly an issue if you buy a portfolio and it cools while you have the portfolio him up because the price you have underwritten it for will decrease and you won't make a profit on your sale. does go down, chances are that will be reflected in the selling prices. amcbigger issue is if an

buys from banks at a price. if in the intervening time the price goes down, the amcs when i be able to make a profit. see thethen we will amcs sit on the portfolios waiting for the market to go back up. yvonne: have you seen indications of that, especially since the economy is starting to slow? are your clients asking about whether nonperforming loans can recover in that kind of environment? >> everybody is concerned about that issue. , it ise into two cities not as much of a concern, and the prices have not come down substantially. you don't see these towers of empty buildings you have mentioned. and tier fourree cities, that is more of a concern because you are less likely to sell those easily.

investors will factor that into their price when they are offering a bit. yvonne: what kind of return can i expect now? low, ias been relatively guess come if you compared to india, where the ease of doing business is better, the recovery process is quicker. >> investors are looking for something in the range of 15% 20% returns, which for china is a good return for debt. we are not talking private equity here. the returns are coming over typically within 24 months. you will be getting your money back on and nonperforming loan sale. in other jurisdictions, it could be longer. david: what is the buy-in for the retail investors? it's not just for any institutional. what is the typical buy-in? >> experienced distressed investors.

the business is not easy. , legal processs comes into play in collections, so it is people intensive, labor on the ground to collect them a so it is not for the faint of heart. pretty much now it is only the distressed debt funds and the investment banks that are really putting boots on the ground in that space. yvonne: you mentioned the change in amcs. it used to be buying and selling , but nonperforming loans now they are taking loans from local governments, regional banks, all the way to your struggling peer-to-peer lending platforms. are they still stretched to tend to take on the nonperforming loan issue? >> they did lose the plot for a while. they went off and started doing a lot of risky businesses for the amcs. they became shadow lenders themselves.

acquisitions that did not turn out so well. the spotlight has been turned on them and they have slowly started to gravitate towards their roots. this has caused them to focus on one thing, nonperforming loans. we can't get in trouble if we are buying from state-owned banks and selling to foreign investors. that is what we will see for the next couple of years. rishaad: there are fewer domestic players involved because of liquidity issues. have they done anything to build that up this year? >> liquidity will continue to be a problem, particularly for this asset class. i don't see it returning anytime soon. a pharrell type of asset to lend to. i don't see banks willing the lending to support investing. what they will do is support someone's portfolio. they will lend against apple for

you, but not to support the entire acquisition. p investable universe within the context of china, those are plain vanilla nonperforming loans? you have this massive shadow banking industry. i would imagine there are distressed assets within that sort of universe. rishaad: i would add one thing, how vanilla are they? >> they are very vanilla loans, straightforward, private companies. they borrowed renminbi and they can't pay it back. they have put a property collateral and now it will be sold to pay it back. the trust loans, some of the things you have heard about, those aren't for sale at the moment. some of those might come forth in the next few years, but right now is not the focus. david: five key success factors to be successful in this market. very briefly? success factors are

if you want to buy nonperforming loans in china, you have to be patient with amcs. they are state-owned entities with their own way of doing things. it is not particularly easy. you have to establish yourself as a realplayer. the amcs don't want to spend a lot of time if they don't think you will close a deal. they want to know you have got the money, you have done it before. they don't want to do a long dance for you not to close the deal at the end of the day. reallyo have to be working with people who know what they are doing. if you come in from another part of the world where you have done this business before and don't know anything about china, the chinese loans, or the market, you will overpay for the assets, so you need to deal with local players who can tell you about the local market, can tell you about the local courts come and give you a better feel for how much you should be paying. rishaad: thank you so much for coming.

ted osborne. a look at tesla, naming a new chair, triggering doubts elon musk will be reined in despite brennan's with regulators. been on tesla sports and 2014 and will leave her role with telstra. let's bring in our reporter for more. what do we know about her? it is a fair question. she has been on the tesla board since 2014. she is currently the chief financial officer at telstra. she certainly doesn't have the public profile of elon musk. she is 55. she has long history in the business world in the u.s. and australia. she has worked at juniper networks, toyota arthur anderson and others.

andcertainly has the cv business credentials investors were looking for. my colleagues in the states have talked to former colleagues and managers, and they say she is fearless, smart, tough-minded, rational, and not a pushover. it will be interesting to see how she manages this job. investors were looking for someone to rein in and harness elon musk for shareholder interests. david: we have established her credentials. that doesn't necessarily mean she is the solution to this specific problem. that is probably a fair observation. theis the solution to problem the sec identified. her appointment is a response to that. they want to separate his roles.

there are investors looking for an outside person to come in and try to get a grip on elon musk. there are those who were surprised by her appointment. she is effectively and in decided. she is an independent director of tesla, but has been working with the same team, board, and elon musk that created these problems during this time. that thesergue independent directors on the board have already failed to create the right levels of governance, and that was why they came to this agreement. is intrinsic to the problems or whether she will be able to take that elevated role and do something, we will have to wait and see if she's able to do that. david: we will see. angus, thank you. rishaad: let's tell you what we

have coming up. , wanted thatring suits the world's second-biggest software services company just fine. we have an exclusive with emphasis next. this is bloomberg. ♪ this is bloomberg. ♪

tictoc sharing a video about walmart employees facing a bleak holiday season. the retailer responding that it is a type paper market. on the terminal, lloyd blankfein taken withhave been key players in the 1mdb scandal. not out why you should expect more surprises from the fed anytime soon.

you can check out the stories trending across bloomberg right now. david: no big surprises. infosys is back to being boring. rishaad: after a tumultuous 2017, infosys has returned to stability, a sentiment confirmed by the chairman, who spoke exclusively to us at the bloomberg new economy forum. >> i think things have he full well. it is over a year since i came back to infosys has the chairman. things have been extremely stable. we had an excellent new ceo about nine months back. the business is doing well. last quarter, the company grew 4%. rishaad: in india, it is all changes well. change as well. his that the model other country

should be following? >> absolutely. supporte provides beyond communications, identity authentication, know your customer, payments, and so forth. it has been developed by the government over the last 10 years. now there is tremendous interest in governments creating a similar digital infrastructure for their economy. rishaad: we have these draft proposals favoring indian startups. what are the implications? >> i don't know the state of such proposals. the indian e-commerce market is the most hypercompetitive e-commerce market in the world. we have a large presence with walmart buying flipkart. alibaba is coming in a big way with multiple investments.

india is an interesting market for e-commerce because you have american companies, chinese companies, and indian entrepreneurs competing. it is a great time for indian e-commerce. rishaad: how do you characterize the state of the economy at the moment? >> it is the fastest-growing economy in the world. there is an election next year. that is part of the equation. otherwise, it is a robust economy, a consumer-led economy. war withdoes a trade china and the u.s. worried you in any way? >> high and a proponent of globalization. rishaad: you have to be with the job you have. >> my business in life depends on globalization. obviously i'm a strong supporter of globalization. that limits

globalization is not something you like. more countries will do business maybe bilaterally. chairmanthe infosys speaking to me at the bloomberg new economy forum in singapore. on the way, it is that time of the morning. david: battle of the charts next. this is bloomberg. ♪

rishaad: time now for her battle of the charts. pitting their charts against one another. there is the function at the bottom of your screen. chart.bringing you of a you haven't heard of it. it is up 300% in 13 days. the yellow line is the share price. david: there is a lot of liquidity. >> the blue bar is the volume of shares. one piece of caution. it is standing at 74 times p/e

ratio. has inomes down has it recent three days. if you want to join the party, think about it. si, itd: if you had an r would be way overbought. david: it makes you nervous. rishaad: it is giving the altitude sickness. david: it is a brokerage. do we know why it is so? >> it is cheap. it debuted last month and sold shares under two yuan. rishaad: quickly. >> i have a trade for you. rishaad: i will be the judge of that. >> this is a strong link between of thetory prices held factories and export prices. you don't have to be a genius to see why. that has broken. we have china's export price.

what is going on? why are prices surging has we have this moderation and factory prices? we think from anecdotes we have gathered from reporters, speaking to people at trade fairs, that chinese manufacturers have pricing power now. they are looking at relatively robust global growth, a strong u.s. economy, and they are raising prices. that is anecdotal. otherwise we can explain it. that is how we think we can explain this rare divergence. david: send us your comments and why on tv . this speaks to the exports china may be exporting. on that note, too great charts. rishaad: it is a tough one.

it sounds like a good idea until you do it when you look at the stock price. today.ppi perhaps that is the good spin. by that much. a reminder -- rishaad: tequila is one of the most ph neutral alcohols you can have. never mind. interact users can with the charts going to the gtv function to catch up with key analysis and say this chart for the future. ♪ for the future. ♪

>> it's almost 11:00 in kong,ore and here in hong 2 p.m. the market rally continues. well, not really. be, but byit would this time, it's stalling. declines.leading once again, under pressure. theolding this week, and latest inflation numbers were basically in line with expectations. >> and oil is down for a nice day in new york. so all in all, that is in fact market ahead of weekend open talks. asia.s bloomberg markets

>> morning session, over any morning this week. of itught you the end right here in hong kong. have a look at what's going on. week before stocks on the street -- leading to weakness as we face many head winds. not only did we get that fed lack of movement, which has been by virtually everybody, we do have oil prices in a southerly direction. hong kong leading things. hs1 down just about 2%. course,r thing, of dollar strength. and that is definitely making itself felt in the foreign well.ge as currency.ging markets let's take a look at what else theappening and seeing on commodity side of things if we have further movement for oil as into that opec meeting

in ab dhabi. the other thing, we do have the iranian oil equation, all part of this formula that they have to try and come up with. we also have, of course, a look thehat's going on with indian markets as well. >> looking down there at the futures,0 of 1% for the currency might get a little of help. but, again, the dollar is on the way up. earnings, about 10 companies due earnings today. >> oil price falling 73, when it rupee.o just one basis point. go in after how things the holiday. >> 5% back up. open is a little bit later

on. is in sydney with an update. >> the justice department is selling millions of residential mortgage-backed securities, by, quote, knowing repeatedly making fraudulent statements about the loans. they underwrote, managed or offered. the bank says the suit is not supported by the facts or the law. stocksatching asian after the washington post u.s. f.d.a. is impose strict -- they're worried about the people numbers of young trying vaping and e-cigarettes, although overall, smoking rates lowest on record. the bank of australia has given thepbeat assessment of

economy, helping to spare inflation. quarterly statement reiterated that the higher interest rates are higher to be itropriate at some point but says there's no strong case for a move at the moment. the bank also warned of risks the worsening trade war and a weaker china. theredicted by everyone, fed stood still in its penultimate meeting of 2018 but remains on course to hike next month. they note economic activity rising at a strong rate an. for furtherd fans gradual rate increases in the coming months. global news, 24 hours a day, on twitter, powered by more than 2700 journalists and analysts in over 120 countries. allen.l this is bloomberg. again inion has slowed china as the economy drags and the u.s. war with

escalates. >> our chief north asia correspondent is here with us on latest. the very interesting. home.t go ha ha! >> that's what our guest said earlier. all.not interesting at he switched the topic. >> well, i find it a little bit interesting. priceve consumer inflation pretty much holding at 2.5%. a few things going on here. highest since the about 2014. the lunarip out holiday distortions. but still, it's well below the full-year target. one thing we were kind of looking at, whether food price to keepn was going picking up. flu. was a swine also keep in mind, china has imposed those soybean tariffs go a lot of the soybeans into hog feed, which then feeds into pork price inflation. but we didn't see it. it pretty much held steady in october. didn'tterestingly, if i

sell you with hog feed -- "hog."had me at [laughter] >> let's look at ppi, because that declined for a fourth month row, down to 3.3%. the previous month was 3.6. line withg in expectations but what you are starting to see is a trickle-down effect of the trade war starting to -- and the slowing chinese economy that is hitting the pricing power at factories. >> speaking of the trade war, yesterday, suggesting the front-loading continues both ways. >> yeah. both being imports, kind of better than expected. you are seeing, very likely the increase tariffs coming in january from the united states, and that is manufacturers. that's where that also perhaps feeds into some of the inflation figures. but, again, going forward, you're also having a holiday so there's more frontloading as well in orders. >> we'll see how long that lasts.

we'll wait till maybe end of the corner before we actually see tricklingck start down. >> hopefully not. but it's been good. so how long can it actually last? steve, thank you. sean, our chief global equity strategist. the china story? let's set the trade aside, in incremental support measures that have trickled through in recent weeks. not enough?enough, what's the sense? really polarof a world. the credit crunch, we had a mini crunch, which sort of coincided with the trade war. didn't really get the sort of peoplesing perhaps that noticed. and that's still running through pbocystem today, even the admitted last week about this gray rhino effect, where the know, spillover is still working through the system. you've had the whole problems the the pledged loans,

bloops of the p2p platforms. really what's hit the sort of marginal financing for a lot of companies. theto the point about factory gate prices being weak, overnk there's an infantry hang stein to build up over the moment. cycle of howrmal credit crunches work through. investorg said, sentiment on a number of measures is about one of the worst ever. so we look at things like discounts on the china funds. we look at some of the positioning companies doing the most amount of share buybacks in china. of it suggests you've got this really polarized world. bad macrodata, terrible sentiment. i generally feel that it's not a owning chinese shares, as there's a bottoming out going on. few stocko t 2015, very

suspensions. >> they just announced that this week, that they were going to limit the amount of time that you could actually hold the stock. that was one of the biggest concerns. >> yes. a really big overhang that's being removed. the second one is, in a sense, using the moral persuasion and look, things are not as bad on the ground, is a far better using the money, rather than encouraging funds to buy through government pressure. to clear a lotts better. so i feel that, yes, it's not out there. it may still undershoot some of the data. that's generally the best place to be buying shares. >> it's interesting too. talking aboute what really had led to diversions between china and the u.s. it really has been what we've been seeing when it comes to the policy side of things. had the leveraging campaign in china, just creating this huge gap between u.s. and mainland stocks.

and yet i think the optics were changing now next year, when you cuts comingally tax through in china and the room for fiscal spending is really at the midterms. does that leave more upside for china next year? >> i hope so. kind of a very odd world. everybody in the united states, aboutleagues, are worried mr. powell of tightening, that tighteningdo the phase. in china, they overtighten sometime in the first, second and now, of course, have loosened policy. the policy divergence between and china is really dramatic now. again, it sort of fades, the is alreadyhina passing through that worst part of the phase. they realize they made a did some u-turns, where mr. powell feels very empowered now to be raising rates. genuine concern is building up, even in the bond market, between the tips, just saying there's not really that much inflation. continuing to feel

highly convicted to raise rates. >> i know you have a call on the which we'll talk about. but just very quickly, to segue into that, if i'm sitting on equities, there's a camp -- hoping that that money comes here. that you're getting, is that going to be more a rotation, or does the that correction happens, is it going to take the whole world down with it further? a casee's always been u.s. sneezes,tyu everyone else rolls over. paradoxically, there's not really been -- the balance sheet is in pretty good order. it's been good micro. bad macro. the high oil prices really hurt most of asia. that's down double digits. a really big plus. cutsa series of rate coming through in asia. so yes, mr. powell is tightening the oilne hand but prices dropping has been a big relief valve for asia.

>> all right. hold that thought. global equity strategist from jeffreys is sticking around to talk more about the fiduciary. new york crude stepping into a market just days before opec's production meeting. a guest that says there is a good chance the cartel will cut output in we've about the fed, staying pat as expected. traders have seriously concerned about the unwind. just ahead, we talk about the impact on equities, if anything. this is bloomberg. ♪ ♪

>> let's talk about the feds. so no change at the latest meeting, leaving the final rate hike for the year, which likely is set for december. emerging, as a bigger

issue, is this $4 trillion balance sheet t concern that it's being reduced too quickly. >> the bond market really watching that. our globalo economics and policy editor. she's also watching that out of new york for us. most read and most emailed on the bloomberg earlier this morning. why do you think that is? >> well, it's not only because it had a great title. denial?ed in traders say a $4 trillion ugly.a could get who wouldn't click on that? it's one of the first stories i read when i woke up. think the reason really why it struck such a nerve is it touches on this whole question of balance sheet reduction, which is accelerating now, and could do to liquidity, what it may be doing to the affected feds' fund right. bonds, you're going to end up creating less liquidity. now, the fed is currently on to reduce its balance

sheet to $3.7 trillion by the theof next year from beginning level of 4.5 trillion, quite a reduction. what traders are worried about, they just moving a little too fast? because they're accelerating the pace of reduction. be draining too much cash from the system at once? and they're doing this, as we and more of the banks, due to the dodd-frank regulations passed. hold more reserves against their trading portfolios, et cetera. effectivesee the funds rate rising. the chart shows you the range for the fed funds rate. got a line across at 2.25. a line at 2%. that purple line, the interest on excess reserves. the difference the fed is trying to manipulate. but definitely you can see that that is inhing

focus. thised is saying, hey, isn't our fault. it's not because we're taking liquidity out of the system, it's because bond yields repo rates are higher. but this is something on everyone's radar screen now. >> if bond traders' fears materialize, how is the fed likely to react to this? >> hard to say. made one tweak, but they basically say, we're not to short-term funding markets. traders are afraid they're going once,in too much money at cause volatility to spike and disrupt their whole ability to move funds, et cetera. fed official said that's whether he expects if this continues, to maybe even december. let's listen. a i just do not see that as

major issue in the overall outlook for policy. they made one technical you pointed out. there was something -- they might make another one. at this meeting, they did not. but this doesn't seem to me to an urgent issue from the standpoint of fed policy. furtherneed to make a adjustment in that interest rate, they can do it in december. >> you know, i think even a lot of bond traders say, hey, we're not there yet. it's not such a big deal. definitely a concern out there. again, i think that's clearly why this story struck such a nerve among all our bloomberg audience. >> all right. ours bring that topic to next guess. kathleen, thank you. sean from jeffreys is still here this.k us through are the bond markets actually right at this point when it concern, whether or not just about raising rates but also when it comes to the balance sheet? fed ise a risk that the

making a policy mistake here? >> i think there is. it is the first time in my life i'm glad i'm not doing strategy. just equities. out, there's two camp there. one is saying there's no inflation, so why are you raising rates? well, you're is, doing double tightening, reducing the balance sheet and raising rates at the same time. latter one has never really been done by the fed. the last time they tried this was 1950. it's a bit of an experiment. >> for mr. powell, the equations are not sitting comfortably, because been almost forced into a rate-tightening cycle. all these other supply issues, the low inflation. for asian emerging markets, the equity markets have become very to the balance sheet reduction. that primarily has been one of the big issues in terms of driving share prices. so that pace of sell-down is for the nextlerate

12 months. again, it's going to make life for partsdifficult that have been very dollar-dependent. unfortunately, parts of hong well probably won't get away from that. so that draining of liquidity, certainly see is reducing every week now. that'sain, i suspect just a reflection of mr. powell's attempts to reduce the balance sheet. kind of feels like next year is going to be 2018 but possibly worse. to real rates. i know there's a big debate now. on right have rates got on the a point where it's really u.s.erproductive, even for equities? >> really good question. we have more e-mails about our than on real rates anything else. a lot of clients have done their own work and feel that at least real rates below 1%. equities can do reasonably okay. consensus is that real rates above 2% and equities the economy start to find

life very, very difficult. there's that between the one and the two. been taken away essentially. >> unfortunately, we are sort of veryng right into the moment. >> to go cold turkey. >> that's probably a good analogy. think the thing i would say to investors is that at some point, those real rates will cause credit spreads to widen. been veryey've fortunate that high yield and bond spreads have been very tight. above one rates going give the signal for equities that this is quite a different regime shift really. >> you mentioned about how inflation expectations haven't oilly gone anywhere and prices certainly is one thing we've been watching. it leads us to the question of been asking. and it has to do with what's going on with crude. they've been

asking, at what point is the oil price fall going to start to stocks as well as credit? >> that's a very good question. markets likeuity low oil prices, they like real rates low. sense, it's not a bad world for equities. is that of all the parts of the equity market that have been producing some of the highest free cash flow, it's been the energy stocks. companies have been in sort of a balance sheet recession mode. ony didn't want to spend caps, they were running their businesses for cash and offered highest cash yields within the equity market. even though the oil price wasn't much, it wasoing one of the favored areas for equity investors. so in that respect, it's going to be more difficult for equities going forward, because essentially part of the equity faded.was very well

a lower oil price tends to be very good for equities. got this balance in shift. balance sheet reduction, bad for em. >> i'm looking at when the oil barrel.ere 148 a >> flashback friday. scared just then! [laughter] >> there's all sorts of other think we are well versed in, which probably led to what happened. it really that important to the barometer ultimately, and high oil price in part 2007-8.was going on in >> it principally led at that time by china, the global growth, and really was seeing growth.inary credit probably one of the real genuine emerging market rallies in the decades. unfortunately, when we look at price in local currency

terms, in many em markets, it's to that highs now, choking point. to demand -- the demand would impact then a way, oil market by itself. >> it's a huge credit, interest rate increase, in effect? >> it is. whether it's been india, turkey, that sensitivity to oil this cycle has been much more pronounced. again, policymakers in one respect ignored it, right until the very last minute. think anything above, as we saw $80 a barrel of oil, em was really finding it tough. so hopefully it won't go to 148. so far outside of the sort of consensus. and really, really would be difficult for a lot of the emerging market banks now. >> always a pleasure. a fabulous weekend! >> you too. >> that's our chief equity strategiest at jeffreys. tell youe're going to

what we've got coming up actually. catch up with all the interview, including this one going to, just tv . theou can also join conversation by sending messages to our team during our life programming. check it out. tv . this is bloomberg. ♪

>> going to that close at the break, down 1.1%. weakness really right across the board. hang seng extending some of the losses now. nearly a 6 in front of those three digits there. 1%.g better, all 3/10 of just having a look here. cent.g at 10 a deal to create smart hotels,

it's down 4%. ame maker, japan, sending out warning about its business in china. this is bloomberg.

>> so we just have some breaking news. you guys might have seen it just red across your bloomberg screens and bloomberg t.v. here. so that's what it is. keystone xl, the pipeline project as we understand it, by federal. that theerstand justification for approving it essentiallys incomplete, according to the judge here in district court, district of montana. what we have here so far, based on this. details, ofu more course. saga.s been a longgoing this is big news here. we'll check in with more details bit moreo get a little

color on this. in the meantime, let's get caught up with first word news. with more.g us paul? >> thanks, yvonne. proposing barring immigrants who illegally cross border from mexico from being granted asylum. security security secretary says the current system is overwhelmed. the president has blamed u.s. asylum rules for luring thousands of migrants over the years. trump plans to issue a proclamation on friday. google says it's changed some policies on sexual murk miscondt thousands of employees protest.t in they're promising greater transparency about investigations. some critics say the changes don't cover google contractors or claims of racial discrimination. a marine combat veteran killed 12 people at a country music bar

in southern california, then took his own life. the shooting happened during inlege night at a bar thousand oaks. police have yet to identify a motive. named asrer has been 28-year-old david long, a machine gunner who served in afghanistan. he had been interviewed by police earlier this year for possible ptsd-related behavior. the financial times says victor mallett has been refused entry to hong kong after his work veto abruptly cancelled last month. he has asked for a full explanation. mallett has advised the president of the f.c. the pro independence political party was subsequently outlawed. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. is bloomberg. >> just going through the

markets, this is the equity itself. for the region asia pacific index, down. downward shift. no change on the two-year yield. u.s. dollar index continuing to climb, albeit much slower than it was ever. let's have a look at some of those companies, getting back to chinese equities. there we have the car makers this time. car makers, again, are really it.ing look at this. commentary.fter comem it could be below 2017. if that is the case, taz thernment is -- as government is warning, it would be the first time in two decades we've seen car companies shrink in china. that with some of the car makers in japan. we've had a little bit more on

well.s that's currently a look at what's going on with some of those car makers. course, oil prices also help to buyth people wanting the vehicles. a high oil price does lead to fewer car sales. today we're seeing the reverse. crude may be up a fraction but down 2.1%. 60 bucks a barrel level. overall, justdex a tad lower. oil majors there on the way down. the biggest losers on the market in hong kong. been very muchas at the fore. >> a roller coaster ride, you can call it, what we've been with the price of crude. over the past month, we saw market,ipping to a bear after falling more than 20% from its october high. feeling the pressure to cut output again when they dhabi on sunday. >> i can't help but snicker at the news, because it's changed so much.

just talkinge about $100 oil. now we're back into a bear market. what do we get wrong? >> i'm getting replies to my tweets, 100 on oil, still coming now. academic. let's talk about actually the chances of, well, first, the discussion and obviously then pushing through with this. prices, two reasons for that. expected iranally to come in and -- they continue export. that has surprised the market. oil,dly, if you see the they -- in the last three years, it has never happened before. the increase about a million barrels a day. a lot of amount. now, if you look at the demand side of the equation, the slowing across markets. u.s. demands for gasoline has

been weak. most of the oil has come from emerging markets. feelingrkets are pressure of high oil prices but currencies.ating and you can see all the sales in china. these are sales in china that have been negative. negative and also with gasoline. up on pressure building the demand side and supply side as well. opec in that sense will probably output maybe this weekend or the next one, two months. >> you mentioned about iran and these waivers. how do you think this is all going to pan out in the next especially with these eight countries? >> see, the bulk of the exports will be taken up by two countries. it's about 60%, 70% of iranian oil. gets broken down across six other countries. companies,, european

believed greece, we belie they may not be absorbing the oil. has now supplied one million barrels of oil. quite quickly. has the earnings output changed prices?se swings in the >> right. the refining companies in asia were actually feeling the pain rising oil prices, now they are -- reverse for the companies where oil prices are coming down. oil prices, they've fallen about 20%. don't see much decline from it. we will see some kind of action coming in from opec and russia included where they will try to absorb. and that could lead to a flip in oil prices. going forward, if the

currency market continues and oil prices continue to go up from here, then they will start feel the pain again. >> it's friday. of getting confused with all the moving parts. yes, it is a complex story. let's get more on this story. guest, saudi and russia to -- we are joined to talk about the story. us why they may need to do it by next year. >> look, opec, let's call it the since 2017 when they joined hands with the producers to actively manage the surplus that was in the markets since 2014. opec has very consistently said that it's going to have a more hands-on approach. it's going to do a constant

rebalancing of the markets, if you will. we saw evidence of that very year when june this they stepped away, if you will, their outputfrom restraint agreement of 2016 and said, okay, venezuelan going down.s iran production might slump as well. extra one put an million barrels per day in the market. the time has come clearly that has to start worrying. it is starting to worry about the supply-demand balance, back to surplus next year. so that's why i think it's quite least that they will at start talking about it at this weekend meeting. the decision, of course, will need to be taken when the full -- the whole ministers meet december. >> i was just asking our analyst about what went wrong. how do we end up forecasting 100 nowjust a month ago to crude entering into a bear market?

did we you think -- what get wrong? >> yes. ha ha! if markets actually got it wrong or they were caught on the back foot. 180-degree turn in sentiment start, compared with the of october, when you saw four-year highs, and as you just mentioned, wti and bear market, 20%.more than three main surprises. i'll call them surprises. all, supply. supply was not expected to go up extent it has gone up, especially from opec and russia. if you look at their promise in lot ofhere were a sentiments in the market that for that extra barrels. if you look at the opec members, added nearlyhave 1.6 million barrels per day over saw from thesee countries. supply is more than adequate

now. demand, again, as your analyst mentioned earlier, demand expectations are being pared back. that startedhing in the second week of october, the volatility in the broader financial markets brought oil markets attention back to demand. we expect robust demand as we had been expecting through the first part of this year? demand expectations are being pared back. and the waivers, as you alluded to as well, there was a lot of mixed signals from the u.s. 8 announcement by donaldson trump that they -- by donald trump that they were withdrawing. lot of tough talk from the u.s. the market was at points during the third quarter actually two million up to barrels a day of iranian production. that's tempered quite a bit now. more like half of iranian exports going to be

market.from the >> i want to ask you about the china factor. it is the single biggest contributor to incremental demand, to the demand equation. seencent months, we've obviously the economy slow down. final demand, has also been sluggish. plus the auto market has seen three or four months of successive declines. can you quantify what that on the energye demand curve? >> so the expectation of china, context, is the second largest oil consumer in the world after the u.s. largestsingle contributor in incremental demand. a big deal, what the chinese economy does. and as a result, what chinese does, which is very obviously very closely rightly as you quite pointed out. it has drawn the oil markets' attention. in two decades, chinese car sales and china,

again, being the biggest car market in the world. chinese war steals expected to-- car sales expected drop. that is a big deal because that clearly is going to have an gasoline consumption, which has been relatively strong in china. demand is it adding? it was expected, close to 500 to 600,000 barrels per day, a substantial jump for 2018. however, 2019, it's being -- you know, the expectations are much moderate in demand. manufacturing is slowing down. israstructure construction slowing down. all of these are major consumers of oil in china, even more so than gasoline. gas, oil or diesel demand is well.ed to go down as exactly how much, nobody really knows. for now, the oil market is just theing an eye on macroeconomic data from china, which every single day seems to bring more bad news on that front. >> and certainly it has. all right.

we're gonna leave it there. founder of insight, joining us from singapore. breaking lines coming through from the japanese maintainsat industrial plants around the world. coming out with a note with concerns they've been particular when it comes to their l&g project costs, over growing concerns after the project costs. about newen talking financing acquired this fiscal year. untraded at the moment bad.ertainly pretty >> suffice to say, when these comingmatch, and we are out of the lunch break in japan, headlines.ok at the the is going to go down toilet. when they say they might not continue to exist because of something like this, investors are not going to like this.

it is set to fall. hasn't fallen just yet. >> keep in mind they just reported their half year group earnings results as well. it was falling quite a decent amount here. thosecontinue to watch lines that come through and when the stock, of course, trades. seeing doubts over the l&g projecter these costs. >> coming up, we talk about india. lots of things to talk about. this earnings story. and we also have this indonesian up. sharing start >> yes. they raises ahead with a push. and the c.e.o. says fundraising, not a problem. more from our exclusive interview, next. this is bloomberg ♪ ♪ ♪

>> okay. so we were just talking about the stock here, and it just -- our bloomberg

terminal. we're down about 5%, 6% on the after the company basically said there is trouble ahead, financial trouble, and doubts over this course, ongoing concern. in other words, there are doubts that it may essentially, in simple english, continue to exist as, of course, in its current form. that, toomething like that extent, your stock is going to go down. when it came saw, to their forecast, they slashed it for the full year. 40% since then. they were predicting an unexpected loss last month as well. certainly we've seen these concerns kind of accumulate up until this point that we're getting that statement from the chairman. they also announced in this that a midterm plan here, they're going to undertake a tentative suspension of and instead focus on the execution of ongoing projects. president also taking a 50%

pay cut for five months. we'll see. but yet the stock falling substantially. we'll continue to watch. just moments away from the opening of the session in india. let's go to our reporter in mumbai. what's the open looking like here today, after coming back from the holiday? >> sure. seeing gains coming through, we're now starting to building in,sure and once again, when it comes to backifty, they're moved below crucial levels for now. aboutlooking at cuts of half a percent. what's bearing down on these industries is banks, as well as some of the other private sector banks, which are leading to weakness on the indices, at this point in time trending lower. >> oil, the decline, i would imagine that's good for where you are?

>> yes. well, considering that crude is largest imports for india, we were expecting a bit of, well, strength in the indian rupee. but that's actually not come to be. we are actually looking at the u.s. dollar strengthening the rupee. it has moved up as much as a percent. so around 72.8. we will be watching how the rupee reacts and impact some of these export companies going in. >> all right. sweet. thank you so much. us, out of mumbai. we're talking go-jek here. the c.e.o. says the indonesian ride-sharing project is making this big push into other markets. he spoke to us at the bloomberg new economy forum in singapore. >> a tech start-up. is a continuous

project. i can assure you that, you know, i believe we are favorable position in many ways and not just the theity of -- it's not just quantity of the fund-raising but even more important is the quality of fund-raising. from ourn see shareholders, you've got j.d., variety of other heavy-hitter financial institutions. you really see the world's best the key verls that we are -- verticals that we are trying to execute on in order to this -- you know, the first in the world of kind of a actually encome encompasses all your daily transactional needs. the quality of the fund-raising thiss really going to set apart. our funds, some of it will be used for international ex tangs. we're -- expansion.

we're already at about 30, 35%, two, three months, which is incredible. we were shocked to see the quickly. so a lot of it will also be to verticals and further increasing the penetration of our services in indonesia, the largest market we are the market leader. so i think that, you know, intensethe very competition, actually the sach situation point of the consumer versus, say, china, it's still very small. tore's still so much more grow across transport, food payments,across logistics, digital goods, so i scraping thenly b.face of how big go-jek can our market is the entire middle class of southeast asia. it's a really big pie that we need to attack. that.ding will facilitate

>> might you need $2 billion? that's a number out there. close, more, less? ha!a i cannot comment on that. >> when do you expect the next be completed?to >> i also cannot comment on that. it will be a is sufficient amount in order for -term andieve our short medium-term objectives. >> and that was the go-jek c.e.o. speaking at the bloomberg new economy forum. have this,week, we well, a host of high-profile interviews. from the singapore festival. so please do not miss those interviews. executives from dbs, microsoft and ripple, monday and tuesday. this is bloomberg. ♪

>> well, alibaba's annual shopping event happens this

sunday. therings in roughly twice value of black friday and cyber monday combined. >> so this year is actually, well, the 10th edition of it. it's been here for a decade. year'save a look at this big numbers. >> let's start with about two billion. that's how many transactions alibaba could process this single day. they are reaching that milestone, expanding further china.and deeper into alibaba's subsidiary is across sixhe event countries, while they are offering coupons and services in 800 counties in if china. lifestyle services are in focus tries to wrestle market shares. merchants on the platform are given discounts on karaoke.such as at its peak last year, alibaba 325,000d an incredible single-day orders per second.

event growing as much as 30% this year. there is one big unknown. what extent will the trade war put a damper on demand? >> all right. so 10 years, we'll see if we actually beat those records. around, thehis time typing is interesting -- the interesting. we're going to see if we're going to see that much this time around. timehis year is the first they're actually including some of those offline sales as well as the convenience stores, the shopping malls. that's going to be incorporated into these numbers too. >> it's actually restarted. so this culminates into the week. we'll see. we'll do a pre-- we'll review week, to see. to see how these numbers are. the breaking news, of course, this past hour, we've had news the japanese company. we're coming off doubts over

this ongoing concern. obviously cash flow problems. will be needed. the to give you a sense of problem, we're down about 40% on the stock. >> and let's take a look at other things. broke that line about this pipeline.l a federal court turning that down, that proposal, which trans-canada, one of the big companies behind that, we are canadian dollar suffer. >> canadian dollar. weakening about a fifth of # #%. markets, wet the

are down. drag off the loads of the day. 2.4% down. cent. another terrible day at aac technologies. that's it from "bloomberg markets: asia." a."

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emily: i am emily chang. this is "bloomberg technology." coming up, is it a new era for tesla? the company picks an insider to replace elon musk as chair. is she right for the job? google's employees demanding the company clean up its act when it comes to sexual harassment. now, google is reshaping how it handles complaints. will it be enough to keep workers happy?